Wells Fargo Internal Procedures Unfair To Debtor?

A bank, in following its own foreclosure procedures, does not necessarily rise to the level of good faith in the eyes of the court. Bergen Assignment Judge Peter Doyne has been drafting opinions with an eye in favor of the consumer. In Wells Fargo Bank v. Schultz, the judge decided that homeowners are entitled to appropriate treatment, whether qualifying for foreclosure or not. A debtor spent the better part of a year diligently working to submit documents to avail herself of Wachovia Bank's "Unemployment Program" following the loss of employment by both the debtor and her husband. She was repeatedly advised documents she submitted were not submitted and sent multiple copies thereof. The bank further suggested the debtor apply for the federal Home Affordable Modification Program (HAMP), when she also did. When Wells Fargo sent a determination letter to the debtor indicating she had submitted all required documents she was also notified that the loan modification program for which she applied was no longer available. Although the homeowner was precluded from raising certain defenses, Judge Doyne ruled that a debtor is permitted to raise a claim of bad faith against the lender where a valid basis for such a claim exists. If you are seeking loan modification in an effort to fend off foreclosure, you should consult with an experienced consumer debt attorney immediately in order to protect your rights. For more information regarding your decision to defend against a foreclosure action, file for bankruptcy or other consumer debt matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. Our law firm is a debt relief agency and helps people file for bankruptcy relief.

Are You Contemplating Bankruptcy Due To Foreclosure?

During this troubled financial time many New Jersey homeowners find themselves facing foreclosure. Mortgage companies, in spite of the massive number of foreclosures pending, tend to remain unwilling to discuss the issues or consider modification, partial payments or other means of resolving the matter. Often the homeowners will not speak to anyone and simply try to straighten out their finances by seeking additional employment or borrowing from others. Months go by and they receive a Complaint for Foreclosure which is ignored simply because they are frozen with fear by the prospect of losing their home. Eventually, if the homeowner does not respond to the complaint, even if they do try to negotiate directly with the mortgage company, they will receive Notices regarding Default as a result of not filing an Answer to the Foreclosure Complaint. Finally, the homeowner will find themselves facing an actual Judgment of Foreclosure. In a recent case, the Court denied a litigant's request to vacate a default judgment of foreclosure against his investment property. The debtor's claim was that under New Jersey Court Rule 4:50-1 (d) the Assignee Mortgagee did not have the original Promissory Note or Mortgage so that the Judgment was invalid and that the judgment should be set aside under Rule 4:50-1(f) due to exceptional situations to prevent a grave injustice. There was no denial that the mortgage was not paid or that there was a justification for failing to make the mortgage payments or any other justification for relief from the judgment under Rule 4:50-1 such as mistake, newly discovered evidence, fraud, misrepresentation, misconduct by the Assignee Mortgagee, that the judgment was satisfied, or released. The Court found there was no demonstration of prejudice which would warrant the litigant's last ditch effort at a reprieve from the judgment of foreclosure and the decision was upheld by Appellate Division. In another matter, the Appellate Court dismissed a complaint for foreclosure because the bank failed to provide proof of its status as the lender pursuant to the requirements of New Jersey Statute 12A:3-301 or the Uniform Commercial Code (UCC) and filed to comply with the notice requirement of the Fair Foreclosure Act (FFA) and N.J.S.A. 2A:50-56. In this matter, the debtor filed an objection with the court to the Bank's Complaint for Foreclosure prior to a Judgment being granted. There are no guarantees that if a homeowner attempts to address the issue of foreclosure prior to a Judgment that a foreclosure will not result, however, there are standards that a Bank must meet including proof of service, appropriate notice and the fact that is in the actual holder of the mortgage and entitled to bring the foreclosure action. If you are facing foreclosure, you should consult with an experienced foreclosure attorney immediately in order to protect your rights. For more information regarding foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and is in no way intended to replace the advice of an attorney regarding your specific matter. Our law firm is a debt relief agency and helps people file for bankruptcy relief.

Homestead Exemption in Chapter 7 Bankruptcy

A debtor sought to claim a homestead exemption for property formerly owned by his father which passed to him upon his father's death in the matter of In re Stoner. The bankruptcy Trustee objected to the exemption, filed under 11 U.S.C. Section 522(d)(1), claiming that, as the executor of his father's estate, the debtor held an interest in the property on the date of the bankruptcy filing. The Court found that qualification of a residence includes permanence. Although the debtor's father passed away prior to the filing of the bankruptcy petition, the debtor used a different address when filing and, in a later amendment to the petition 2 years after the original filing, chose to amend his address to the property for which the exemption is now being claimed. Prior to amending the petition to reflect his address as being that of the property claimed for exemption, the debtor sold the property and divided the proceeds. Further, the Court held that 11 U.S.C. Section 522(d)(1) was intended specifically for the protection of home-mortgage lenders. The Bankruptcy Court, in the case of in re Stoner, held that the mere possession of a future interest as a beneficiary to a will does not qualify a debtor to claim a property under the homestead exemption. If you are considering filing for bankruptcy you will be addressing many issues such as exemptions and whether you qualify for same. You should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding bankruptcy, exemptions, foreclosure and other consumer debt matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. Our law firm is a debt relief agency and helps people file for bankruptcy relief.

Can Credit Cards Be Used To Pay Bankruptcy Attorney's Fees?

Bankruptcy attorneys fees depend on the type of bankruptcy being filed, whether it be Chapter 7, 13 or 11 for businesses, plus there are filing fees charged by the Bankruptcy Court. Many of our potential clients, known as "debtors" ask if they can put the fees on their credit card. The fees cannot be put on the debtors' credit card and it is best if all credit card use is stopped because non-essential transactions which appear on credit cards within two years of filing for bankruptcy are highly scrutinized. In some cases the filing fees may be waived for hardship or allowed to be paid in installments. It is critical that you do not violate the bankruptcy code when filing your petition. If you are considering bankruptcy you should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding foreclosure, bankruptcy or other consumer debt matters in New Jersey visit www.TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. Our law firm is a debt relief agency and helps people file for bankruptcy relief. Contributed by Tracy Luciano

Can Gambling Debt Be Discharged Through Bankruptcy?

Those who find themselves in financial trouble are often unaware that debts associated with gambling can be eliminated in a bankruptcy. While New Jerseyians have received certain benefits such as generating revenue for the Schools, from offering widespread gambling opportunities such as lotteries, racetracks, and casinos, it also has created some pitfalls. New Jerseyians often find themselves with unpaid gambling debts especially when they are provided with cash advances and extended unsecured lines of credit, which they cannot afford to pay back. The Bankruptcy Code does allow for the discharge of certain legal gambling debts. This is dependent on other factors in the debtors case, such as levels of income, monthly living expenses, other debts, and the bankruptcy chapter you qualify for. We can help you discover if you are eligible to discharge any gambling debt as well as your other debts that you are struggling to repay. To determine whether your gambling debts are dischargeable, as well as any other debts you are facing, you should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding foreclosure, bankruptcy or other consumer debt matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. Our law firm is a debt relief agency and helps people file for bankruptcy relief. Contributed by Tracy Luciano

Blocking a Chapter 7 Discharge

A woman claiming misrepresentation by a construction company filed a complaint seeking to block entry of a Chapter 7 discharge. The appeal was dismissed for failure to comply with Federal Rule of Bankruptcy Procedure 8006 and the woman sought reconsideration of the dismissal. The woman attempting to block the discharge, Filomena Boccella commenced an adversary proceeding pro se against the debtor based on claims grounded in consumer fraud and theft by deception. At the last minute, the Boccella sought to amend her complaint in order to avoid dismissal. Boccella’s opposition to the discharge was based on the fraud portions of 11 U.S.C. § 727(c), (d),(e) but her allegations were more aligned with 11 U.S.C. § 523(a)(2). Due to Boccella’s ineffective pursuit of the matter her case was dismissed, as was her appeal for failure to comply with Federal Rule of Bankruptcy Procedure 8006. In reviewing the motion for reconsideration of the dismissal the court, in In re Purington, looked to the matter of Poulis v. State Farm Fire & Cas. Co.,747 F.2d 863, 868 (3d Cir. 1984) where the court set forth 6 factors which must be considered in deciding whether a case may be dismissed without a hearing on the merits. The Poulis factors included (1) the extent of the party's personal responsibility; (2) the prejudice to the adversary caused by the failure to meet scheduling orders and respond to discovery; (3) a history of intentional delay by the party; (4) whether the conduct of the party or the attorney was willful or in bad faith; (5) whether other sanctions, short of dismissal, are more appropriate and curative; and (6) the meritoriousness of the claim or defense. Upon consideration, the court found dismissal of Bocella’s motion for reconsideration was inappropriate and reinstated her appeal. If you have been carrying the burden of IRS or other substantial debt, you can also obtain relief through bankruptcy. If you are considering bankruptcy you should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding foreclosure, bankruptcy or other consumer debt matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. Our law firm is a debt relief agency and helps people file for bankruptcy relief.